FHA loan through my bank vs other options

7 Replies

Hello everyone. I want to get pre approved for my first FHA loan to acquire my first property, preferably a multi family home. I was planning on going through my bank but a real estate agent told me it was easier and better to go a different route and gave me a referral to a lender she uses all the time. I’m currently studying for my license and I don’t think theIr allowed to do that unless it’s a list of three or more options. Either way it has me wondering if there is any truth to that or not. Any advice would be appreciated. I bank through Wells Fargo if that makes a difference.

The large banks will often have their own overlays which are more restrictive than the pure fha regulations.  They can also be Much slower....your agent gave you good advice, generally.  The referral is no violation unless they are receiving some kind of commission/payment.

Originally posted by @Anthony Olaso :
Hello everyone. I want to get pre approved for my first FHA loan to acquire my first property, preferably a multi family home. I was planning on going through my bank but a real estate agent told me it was easier and better to go a different route and gave me a referral to a lender she uses all the time. I’m currently studying for my license and I don’t think theIr allowed to do that unless it’s a list of three or more options. Either way it has me wondering if there is any truth to that or not. Any advice would be appreciated. I bank through Wells Fargo if that makes a difference.

 I'm not a real estate agent, and also not in your state, so I can't comment on what is/isn't allowed, but it's normal in most markets for agents to have go-to lenders that get it done with minimal stress and on-time.

Some agents will give a list of 3 or 4... with one in size 20 font, and the others in size 8 font. Heh.

You are of course free to use whatever lender you wish, but consider that your agent helps a dozen or more people through this process per year, whereas most consumers get one mortgage every 4 to 7 years. Think of a mechanic that is telling you to buy Car Model A over Car Model B... they are the ones in a position to know that Car Model B breaks down all the time, based on what they see rolling (or being towed) into their shop.  (EDIT: Actually this metaphor kind of sucks, since Car Model B that breaks down all the time would mean repeat business for the mechanic. :P Maybe the metaphor would work better if it was insurance agent, since the insurance agent will error towards the car type with the fewest insurance claims.)

Anthony - thanks for the question … I would recommend that you contact your bank and whomever else you want ...using the same exact scenario and questions - outline / ask whatever questions you have ...maybe gets some basic quotes ….once these conversations are completed - make a decision as to whom you want to use for the pre approval/ pre underwritten process ….. the FHA product is very homogenous and shouldn't be too much different from one lender to another ….. the customer service might make a difference